Benefits of outsourcing bookkeeping

Every small business in the U.S.—especially those with fewer than 50 employees—depends on accurate bookkeeping. It’s the backbone for:

• Cash flow management

• Budgeting

• Tax compliance

• Financial decision-making

According to Investopedia’s Accounting for Small Businesses Guide, maintaining clean, timely financial records is essential for tax filings, loan applications, and business planning.

The Hidden Costs of Doing It Yourself (DIY)

Time Drain

Managing your own books is a time suck. Business owners spend over 80 hours a year just on payroll tasks alone, according to the National Small Business Association. That’s two full weeks not spent on growth or customer experience.

Risk of Errors & Penalties

DIY bookkeeping leads to costly mistakes. In fact, 1 in 3 small business owners admit to payroll errors, and 25% have been fined for tax-related mistakes, based on findings from SurePayroll.

Skills & Technology Gaps

Without formal training or up-to-date tools, small business owners often use outdated methods like spreadsheets or manual entry. According to GrowthForce, over 50% of financial mistakes stem from improper tools or a lack of accounting knowledge.

High Fixed Costs

Hiring an in-house bookkeeper costs an average of $44,000 to $80,000/year. If you need an accountant or controller too, your costs can exceed $279,000 annually, as reported by Kerkering Barberio & Co.. This doesn’t include benefits, payroll taxes, or software.

The benefits of outsourcing bookkeeping

1. Major Cost Savings

Outsourcing transforms a fixed payroll expense into a flexible monthly cost. Small businesses typically pay between $500–$2,500/month, depending on complexity, per The Fino Partners. That's a fraction of the cost of hiring a full-time bookkeeper.

KMCo’s comparison shows companies can save 50–75% by outsourcing versus maintaining an internal finance team.

2. Save Time, Grow Faster

Outsourced bookkeeping frees you up to do what you love. Business owners who outsourced reported gaining back 15–20 hours a week, according to ccMonet’s case study. That’s time better spent closing deals or serving clients.

A QuickBooks survey also found that 67% of small business owners say outsourcing gives them more time to focus on growth.

3. Boost Accuracy + Compliance

Professionals catch mistakes before they become expensive problems. A 2024 Capterra survey revealed 45% of businesses were highly satisfied with outsourced bookkeeping accuracy, citing fewer missed deadlines and better financial reporting.

Outsourced pros stay on top of IRS rules and state compliance. According to AccountingDepartment.com, their clients experience fewer fines, fewer late fees, and stronger audit protection.

4. Get Expert Advice & Better Tools

Outsourced firms use top-tier software like QuickBooks Online, Xero, and Bill.com—tools that small businesses often can’t afford or learn alone. They also bring CPA-level expertise to help with forecasting, taxes, and profit analysis, as discussed in Expensify’s blog.

With modern cloud software and expert insights bundled in, your business runs leaner and smarter—without the guesswork.

5. Scale Easily

Need help during tax season or while expanding? No problem. Outsourced firms flex with you. Blackbear’s outsourcing report shows this model allows small businesses to scale up or down easily without hiring or firing.

Unlike internal staff, who need training and benefits, outsourced services provide instant coverage during vacations, turnover, or growth periods.

Side-by-Side Comparison

Feature	In-House Bookkeeper	Outsourced Bookkeeping
Monthly Cost	$4,000–$7,000/month	$500–$2,500/month
Time Investment	40–80 hours/month	Minimal – focus only on approvals & reports
Error Risk	Higher – owner-run or undertrained staff	Lower – experts with double checks & tech
Tools & Software	Manual or limited	Cloud-based, real-time, advanced automation
Compliance & Regulation	Business owner responsible	Handled by licensed professionals
Scalability	Requires hiring/training	Easily scaled up or down as business grows

Real-Life Success Stories

A Law Firm in California

After outsourcing their books, a small legal practice reclaimed 15 hours per week and saw faster invoicing, fewer missed payments, and more time spent in court—where it counts. Read more in this ccMonet client story.

A Tech Startup

A growing SaaS company was spending too much time on reconciliations and tax prep. After outsourcing, they saved $15,000 per year and avoided $5,000 in tax penalties—a win detailed by The Fino Partners.

A Retail Store in Texas

By outsourcing to an industry-specific firm, a family-owned store streamlined inventory and increased revenue by 30% in one year. These insights were shared in Blackbear's case study.

A Nonprofit Organization

With complex grant funding and donor rules, one nonprofit turned to outsourced professionals for accuracy and transparency. They now have monthly reports, clear audit trails, and more time to focus on their mission. That’s the power of specialization.

Is Outsourcing Right for You?

Outsourced bookkeeping works best for:

• Service businesses, eCommerce, trades, or SaaS

• Companies with fewer than 50 employees

• Founders who want to focus on growth

• Businesses spending more than 5 hours/week on bookkeeping

• Anyone feeling overwhelmed by compliance or tax deadlines

Final Thoughts

For U.S.-based small businesses, outsourcing bookkeeping is no longer a luxury—it’s a strategic advantage.

Instead of wasting hours on manual entry, tax confusion, or software you barely understand, you can:

• Save thousands in salary and software costs

• Gain back hours of time

• Improve compliance and reporting accuracy

• Scale your finances along with your growth

As Expensify’s team puts it: "Bookkeeping is a burden for most small businesses. But outsourcing it frees up time and brings in expertise—without the full-time cost."

Make the smart shift today—your future self (and accountant) will thank you.